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MEFA Undergraduate Student Loans – Product Name Only is a great option for borrowers looking for fixed loans at low rates — which are usually offered to borrowers with great credit scores. Find more recommendations in our guide to the best private student loans.
MEFA Student Loans
MEFA is best for borrowers looking to avoid fees at all cost, as the lender doesn’t charge origination fees or late payment penalties. Some other lenders with similarly competitive rates hike up the total cost of their loans with sneaky additional fees.
The Massachusetts Educational Financing Authority, or MEFA for short, offers undergraduate and graduate student loans, as well as student loan refinancing.
You should consider your federal student loan options before refinancing into any private student loan, including one with MEFA, as you can often get better terms and protections through the government.
To be eligible for a MEFA student loan, you need to meet the following requirements:
Be enrolled at least half time in an accredited degree-granting undergraduate program at an eligible non-profit US college or universityBe a US citizen or permanent residentMaintain satisfactory academic progress Have no history of default on an education loanHave no history of bankruptcy or foreclosure in the past 60 months
If you enlist a co-signer to get your loan, you may be able to release them after the first 48 consecutive on-time monthly installments have been made after you have left school.
Pros and Cons of MEFA Student Loans
Pros
No origination fee or application fee. Origination fees take a chunk out of your overall loan proceeds and add on to the original cost of your loan. MEFA doesn’t charge an origination fee — and it won’t cost you to file an application either. (See the best personal loans with no origination fee.)No late fee. If you happen to fall behind on your payments, you won’t pay any extra fees with MEFA. Low minimum loan amounts. The smallest amount you can borrow from MEFA is $1,500, perfect for borrowers who only need a little bit of money to complete their educational financing. Competitive rates on undergraduate loans. MEFA’s undergraduate loans have rates that are comparable to those offered by some of the best student loan lenders in the industry.
Cons
Limited repayment term lengths. You must choose between a 10 or 15 year repayment term length with a MEFA undergraduate loan. The lender only offers a 15 year repayment term length for its graduate loans.Only fixed-rate loans available. While fixed loans lock in your rate for the life of the loan, some borrowers prefer variable loans, which have rates that change periodically. Some lenders offer lower starting rates on variable loans when compared to fixed loans. You’ll need to go elsewhere if you want a variable loan.
MEFA Student Loan Repayment Options
You have three options to repay your student loan after you’ve taken it out: deferred, partial, interest-only, and immediate payment. Each option has its advantages for different types of borrowers.
DeferredInterest-onlyImmediate
No payments while in school or during six-month grace period
Unpaid interest accrues
Highest overall cost
Pay loan’s interest monthly while in schoolModerate in-school paymentsReduces overall costRepay principal plus interest right awayLowest overall costHighest in-school payments
Deferred payments are the most expensive option because you’re not paying off the loan during your time in school or in your grace period, so your balance will continue to increase until you graduate and start making payments.
Immediate payments are the least expensive option because by paying down your debt in full monthly payments right away, there’s less time for interest to accrue on your loan.
MEFA Trustworthiness
The Better Business Bureau, a nonprofit organization focused on consumer protection and trust, gives MEFA an A+ grade. The BBB rates companies by looking at their responses to customer complaints, truthfulness in advertising, and openness about business practices.
The lender also hasn’t been involved in any recent controversies. Between its top-notch BBB grade and clean history, you may feel comfortable borrowing from the lender.
How to Apply for a MEFA Student Loan
Put in an application on MEFA’s website. You’ll enter your email address, name, phone number, and other various items of personal information. You’ll get an estimated monthly payment and rate with no impact on your credit score.Wait for MEFA to get your college to certify the loan. This process takes a varying amount of time — some colleges don’t certify loans until it’s toward the end of the semester. Once your loan is certified, MEFA will send you an email letting you know.Track when your loan funds will reach your college. MEFA will then send your loan funds directly to your college on its designated disbursement date, which varies from college to college.
Types of MEFA Student Loans Are Available?
MEFA offers student loans in several forms, including:
Undergraduate student loansGraduate loansStudent loan refinancing
MEFA Undergraduate Student Loans
The least you can borrow from MEFA is $1,500, perfect for undergraduates who only need a little bit of money to complete their educational financing.
MEFA Graduate Student Loans
MEFA’s graduate loans have only one repayment term length — 15 years. However, you can pay off your loan early with no penalty.
MEFA Student Loans Frequently Asked Questions
Is MEFA student loans legit?
Yes, MEFA is a reputable lender with an A+ grade from the Better Business Bureau.
Are MEFA student loans forgiven?
MEFA, like all other private student loan lenders, will not forgive student loans. Federal loans may be forgiven through certain programs.
Is MEFA a federal loan or a private loan?
MEFA is a non-profit student loan lender. MEFA student loans are private, not federal student loans.
What credit score is needed for an MFEA student loan?
MFEA does not disclose a minimum credit score to qualify for a student loan. If you have a credit score in the mid-600s or higher, you’ll have a better chance to get approved for a student loan from most lenders, including MFEA.
Are MEFA student loans forgiven?
MEFA Loans are private loans, not federally held student loans, and are not covered by any federal student loan forgiveness programs.
MEFA Competitors
See how MEFA compares to some of the top student loan providers.
MEFA Undergraduate Student Loans – Product Name Only vs. SoFi Undergraduate Student Loans – Product Name Only
If your credit isn’t in the best shape, MEFA’s maximum interest rate is lower than what you could pay with SoFi Ave. SoFi and MEFA won’t charge any late fees.
SoFi also comes with an unemployment protection program that allows eligible borrowers to suspend payments on their loans if they lose their job through no fault of their own, for up to 12 months. College Ave doesn’t have a similar offering.
MEFA Undergraduate Student Loans – Product Name Only vs. Discover Undergraduate Student Loans – Product Name Only
You can get a lower minimum APR on your loan with MEFA than with Discover, so if your credit is in good shape, MEFA might be the better choice.
Discover offers a unique perk that MEFA does not. Discover has a one-time 1% cash reward on its student loans if you achieve a GPA of 3.0 or higher during any academic term covered by the loan. You have to redeem your reward within six months after your loan is disbursed or six months after your academic term is over, whichever is later.
You won’t pay any origination fees, prepayment penalties, or late fees with either company.
Why You Should Trust Us: How We Rated MEFA Student Loans
We rate all student loan products in our reviews and guides on a 1-5 scale. The overall rating is a weighted average that takes into account seven different categories, some of which are judged more heavily than others. They are:
Interest rate (20% of rating)Fees (20% of rating)Term lengths (15% of rating)Repayment options while in school (15% of rating)Borrower accessibility (15% of rating)Customer support (7.5% of rating)Ethics (7.5% of rating)
Each category’s weighting is determined based on its importance to your borrowing experience. Rates and fees have the most significant impact on the total cost of your loan, so we weigh those the most heavily. Customer support and ethics are still crucial parts of the borrowing experience, but do not directly tie to a student loan’s terms, so they have less of an impact on the overall rating.
Read more about how we rate student loans >>